The Legal Services Act 2007 (Designation as a Licensing Authority) (No. 2) Order 2011

Citation, commencement and interpretation E+W

1.—(1) This Order may be cited as the Legal Services Act 2007 (Designation as a Licensing Authority) (No. 2) Order 2011.

(2) This Order comes into force on 23rd December 2011.

(3) In this Order—

“the 1974 Act” means the Solicitors Act 1974 M1 ;

“the 2007 Act” means the Legal Services Act 2007;

“licensed body” means a body which holds a licence issued by the Law Society which is in force under Part 5 of the 2007 Act; and

“the Society” means the Law Society.

Marginal Citations

M1 1974 c. 47.

Designation as a licensing authority E+W

2.—(1) The Society is designated as a licensing authority in relation to the reserved legal activities mentioned in paragraph (2).

(2) The reserved legal activities are—

(a) the exercise of a right of audience;

(b) the conduct of litigation;

(c) reserved instrument activities;

(d) probate activities;

(e) the administration of oaths.

Accountants' reports for licensed bodies E+W

3.—(1) Where an accountant, during the course of preparing a report in accordance with licensing rules made by the Society—

(a) discovers evidence of fraud or theft in relation to money held by a licensed body for a client or any other person (including money held on trust) or money held in an account of a client of a licensed body or an account of another person which is operated by the licensed body; or

(b) obtains information which the accountant has reasonable cause to believe is likely to be of material significance in determining whether a licensed body is a fit and proper person to hold money for clients or other persons (including money held on trust) or to operate an account of a client of the licensed body or an account of another person,

the accountant must immediately give a report of the matter to the Society.

(2) No duty to which an accountant is subject is to be regarded as contravened merely because of any information or opinion contained in a report under paragraph (1).

Bank accounts of licensed bodies E+W

4.—(1) This article applies where a licensed body keeps an account with a bank or a building society in accordance with licensing rules made by the Society.

(2) The bank or building society—

(a) does not incur any liability;

(b) is not under any obligation to make any inquiry;

(c) is not deemed to have any knowledge of any right of any person to any money paid or credited to the account,

which it would not incur, or be under, or be deemed to have, in the case of an account kept by a person entitled absolutely to all the money paid or credited to it.

(3) The bank or building society has no recourse or right against money standing to the credit of the account, in respect of any liability of the licensed body to the bank or society, other than a liability in connection with the account.

(4) In this article—

(a) “bank” means—

(i) the Bank of England;

(ii) a person (other than a building society) who under Part 4 of the Financial Services and Markets Act 2000 M2 has permission to accept deposits;

(iii) F1 ... and

(b) “building society” means a building society incorporated (or deemed to be incorporated) under the Building Societies Act 1986 M3 .

Textual Amendments

F1 Words in art. 4(4)(a)(iii) omitted (31.12.2020) by virtue of The EEA Passport Rights (Amendment, etc., and Transitional Provisions) (EU Exit) Regulations 2018 (S.I. 2018/1149), reg. 1(3), Sch. para. 65 (with reg. 4); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M2 2000 c. 8.

M3 1986 c. 53.

Provision of information as to compliance with licensed body's licence E+W

5.—(1) The High Court, on the application of the Society, may order a person who does not fall within section 93(2) of the 2007 Act (information) to—

(a) provide information, or information of a description, specified in the order; or

(b) produce documents, or documents of a description, specified in the order.

(2) The High Court may make an order under this article only if it is satisfied that—

(a) it is likely that the information or document is in the possession or custody of, or under the control of, the person; and

(b) there is reasonable cause to believe that the information or document is likely to be of material significance for the purpose of enabling the Society to ascertain whether the terms of a licensed body's licence are being, or have been, complied with.

(3) An order under this article may direct the Society to pay to a person specified in the order such reasonable costs as may be incurred by that person in connection with the provision of any information, or production of any document, by that person pursuant to the order.

(4) An order under this article—

(a) may specify the time and place at which, and the manner and form in which, the information is to be provided or the document is to be produced;

(b) must specify the period within which the information is to be provided or the document produced;

(c) may require the information to be provided, or the document to be produced, to the Society or to a person specified in the order.

(5) Paragraphs 10, 12, 13 and 15 to 17 of Schedule 14 to the 2007 Act apply in relation to an order under this article as they apply in relation to an order under paragraph 9 of that Schedule, except that for this purpose, each reference to the licensing authority in paragraph 13(1) and (2) of that Schedule is to be construed as including a reference to any person specified under paragraph (4)(c) of this article.

Powers of Solicitors Disciplinary Tribunal in respect of legal aid complaints E+W

6.  Where the Solicitors Disciplinary Tribunal makes an order under section 47(2A) of the 1974 Act M4 in the case of a solicitor who is a manager or employee of a licensed body, the Solicitors Disciplinary Tribunal may, if it thinks fit, order that any other solicitor who is for the time being a manager or employee of that body shall also be excluded (either permanently or for a specified period) from providing representation funded by the Legal Services Commission as part of the Criminal Defence Service [F2 or from providing criminal legal aid work (within the meaning of section 47(3C) of the 1974 Act)].

Textual Amendments

F2 Words in art. 6 inserted (1.4.2013) by The Legal Aid, Sentencing and Punishment of Offenders Act 2012 (Consequential, Transitional and Saving Provisions) Regulations 2013 (S.I. 2013/534), reg. 1, Sch. para. 11

Marginal Citations

M4 Section 47(2A) was inserted by sections 44 and 69(5) of the Administration of Justice Act 1985 (c. 61).

Application of Part 3 of the Solicitors Act 1974 to licensed bodies E+W

7.  Schedule 1 (which applies provisions of Part 3 of the 1974 Act to licensed bodies) has effect.

Application of existing legislation to licensed bodies E+W

8.—(1) The modifications set out in paragraph (2) apply to the provisions listed in Schedule 2 to this Order.

(2) In any provision to which this paragraph applies—

(a) any reference to a solicitor or solicitors shall be construed as including a reference to a licensed body;

(b) any reference to a person's solicitor shall be construed as including a reference to a licensed body which is acting for that person;

(c) any reference to a solicitor's employee shall be construed as including a reference to an employee of a licensed body;

(d) any reference to the address, place of business or office of a solicitor shall be construed, in relation to a licensed body, as a reference to the address specified by the licensed body as its address in the matter in question or, in the absence of a specified address, to its registered office and any reference to notices or other documents being sent or delivered to or served on a solicitor shall be construed accordingly;

(e) “he”, “him” or “his” shall be construed in relation to a licensed body as meaning “it” or “its”.

(3) The modifications set out in the second column of the table in Schedule 3 to this Order apply to the enactments and instruments to the extent specified in that Schedule.

Signed by authority of the Lord Chancellor

J Djanogly

Parliamentary Under Secretary of State

Ministry of Justice